A Bitcoin mining data center in El Reno, Oklahoma, operated by Athlon Blockchain LLC, has been condemned after leaking 3 million gallons of water, according to Koco TV News as reported by Tom's Hardware. The leak forced the closure of schools, businesses, and city and county offices last week.
The facility had reportedly been operating under a city Stop Work Order issued in 2023 due to multiple fire and life safety code violations and expired building and electrical permits. The property owner had been given until the end of 2023 to comply with safety codes and obtain new permits, with construction supposed to be on hold, but it is believed the company set up the data center and began operations without further consultation with the city. The city has stated that costs related to the leak will not be passed on to citizens, and it is preparing legal action to recoup expenses, including city resources spent locating and addressing the leak, from the property owner. The city has also committed to routinely reviewing compliance going forward.
In a separate incident, a Denver data center has drawn criticism after a resident recorded its sprinklers watering its lawn, with water reportedly pooling in some areas. The video was shared amid Stage 1 drought restrictions imposed by Denver Water starting August 2026, which limit commercial properties, including data centers, to watering grass only on Tuesdays and Fridays until September 30, after which sprinkler use will be banned until further notice from the Board of Water Commissioners.
According to Tom's Hardware, it is unclear whether the data center was violating these restrictions. The video's filming date is unknown, so the facility could have been watering on a permitted day. Other possibilities include that the site may be using recycled, non-potable water — which Denver Water allows to be used any day of the week — or that it holds a variance from the utility provider permitting watering under special circumstances. It is also possible the facility was simply violating the restrictions, but there is not enough information to confirm any of these scenarios.
Both incidents have intensified public concern over data centers' water use and oversight. Tom's Hardware notes that closed-loop cooling technologies from companies like Microsoft and Nvidia have reduced water consumption for cooling to near zero in some systems, but incidents like these continue to fuel negative perceptions of the industry. The report also notes that Denver and hundreds of other jurisdictions have passed temporary bans or moratoriums on data center development amid these concerns.